Hi ive requested a paid to date meeting with my creditors ive been in an IVA for 4 yrs now and paid in £15,000 so far, ive no more money left each month. Payplan say its a shame to end the aggreement at this point, ive missed a few payments which they are ok with, but due to the increased monthly payments and the extension of the term i cant afford it any more. What are the implications of a paid to date meeting ??? thanks Neil
Hi
Well your creditors will either accept payments to date and conclude your IVA, your debts will be written off, or they will reject it and you will be very much back to square one.
Regards
Hi Neil, The variation proposal will be very much as Andy puts it above, which is why this kind of thing is usually only proposed when you can't afford to continue by any other means.
I'm sure that with the backing of your IP and enough information you'll have a good chance- creditors are not there to punish you and they will not act maliciously if they stand to gain nothing by rejecting your proposal.
Rather than saying back to square one, what you have paid in so far will be knocked off the debt you owed. Not sure about your circumstance but for some this may make a DMP more manageable
I am sure they will accept as it would be a shame for it to fail now and I would be extremely peeved if they did considering you have done your best and paid 4 years worth of contributions.
Hopefully they will accept, but there have been one or two cases recently where they have been rejected.
Unfortunately BR will then extend the term your credit rating is shot for a further 6 years.
If your IVA should fail then you will be back to square one as the creditors can impose interest from when the IVA started so you could end up owing more.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi My IP requested i submit an Income and expenditure form, ive done this, it shows a surplus income per month of £190.My IP have said on the form ive gone over the maximums allowed ie house keeping etc, so they have re calculated the expenditure. They have found i have a further surplus of £180 on top of the £190. They cant go to the creditors for a paid to date meeting now. Its catch 22 now, My IP said she dosent know what to do ???? I cant extend the agreement or pay reduced money. Im totally lost by all this...... please any advice
I'm sorry you are having problems. Your income and expenditure form has to be realistic in terms of what you actually spend so that your disposable income is correctly calculated. From what you say there appears to be a large discrepancy between what you are spending, or think you spend on monthly items, and what your IP thinks you should be spending. Obviously it is difficult to comment on just a little bit of information but surely if you can prove to your IP exactly what you are spending - by showing receipts for shopping etc they may accept that what you have put down is reasonable and look again at their figures.
That said I do feel that when you complete your I&E you have to really think about what you need to spend and not what you want to spend. (if you see what I mean??) There can be a big difference between those two figures. While you aren't expected to live on cereal and beans on toast for 5 years, you also have to make sure that you are shopping wisely and making savings where you can. You might want to buy the higher priced branded canned tomatoes but really the best buy own brand ones will be just as good and it's surprising what savings you can make when you need too.
As I say I don't know your full situation but I hope you can see what I mean and maybe you can find some middle ground with your IP.
Are you actually speaking to your IP? Sounds to me like it is an office worker you are speaking to.
Insist on speaking to the IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Update from my IP, we cant go to the creditors for a paid to date meeting, because i show a surplus.
Balance owed is £9750. one option would be to try and raise around £5000 and offer this as full and final settlement,but they still may not accept.But how can i raise this amount with my credit rating in tatters.
A DMP would be to long and costly and the third option im told is Bankruptcy.
Well thats the house gone. End of the line im affraid at least i tried.
You could possibly get a small secured loan to close down the IVA. There are products available out there if you have any equity and it does mean you do not have to move your whole mortgage to a sub prime lender.
Thank you all for your all your comments, reply to Michaels answer, my house is valued at £120,000 wth a mortgage balance of £87,000, i dont know who would give me a secured loan due to having an IVA, i would love to obtain one, just to clear my credit rating etc and to safeguard the house. If anyone has any companies in mind please let me know. Thanks Again Regards Neil
